Steeple Analysis

Social Analysis
Social environment of an organization plays an important role in the performance of an organization. The
analysis which we have done also reveals the vital role of the culture and society in the success or failure of
an organization. An organization must carefully observe the cultural and societal forces while performing its
operations in that particular area. In our analysis of banking industry of Pakistan we analyzed the following
facts :

Social classes:
Banks are open for every one and a person from any social class can utilize their facilities by completing
their legal requirements. But majority of banks ( RBS, Samba, Bank Alfalah & UBL ) are targeting the
middle class and upper class. While some banks ( HSBC & Citi bank ) target the business class people and
other big parties

Educational Level;
The Pakistani society is becoming more knowledgeable and educated about the latest trends in the world due
to which they are readily adapting new technologies . They feel free and comfortable and secure to use
banking services. Most of the people think that the bank is the safest and most secure place for them to keep
their money.

Religion and beliefs

Another point is that the Pakistan is an Islamic country and according to Islamic teachings Interest on the
loan is prohibited ( haram ) in Islam. People advice the banks to involve the Islamic banking system but the
demand for the services of the banking services is not much affected by this concept and people still use the
facilities credit cards, car leasing services and loans from banks for different purposes and people also pay
interest for these facilities

Life Style
Lifestyle of most of the people is moderate because majority of people are middle class . In the Pakistani
society the trend is different from the European or American society regarding to the borrowing of money
for different purposes like buying a house , car and getting education by borrowing from banks . Mostly
people here do not borrow for these purposes.

Technological Analysis
Technology plays an important role in providing the effective and efficient services to its customers . The
banks must be familiar with the latest technologies and they must also implement those technologies in their
banks. The banks could get many advantages by the implementation of new technologies which would be
discussed further . Especially in the countries like Pakistan where banking industry is growing at a high pace
, people are getting more knowledgeable about these things and they want to use latest and comfortable
technologies which could provide them better service. Some points regarding to the technological macro
environmental forces that affects the banking industry are mentioned below:

Internet Banking:
Now days the latest and emerging trend is Internet banking or also known as E-banking . Through the
internet banking people can access their information without visiting the banks . Actually the Ebanking has
many advantages like people would not need to go all the way to the banks to access their accounts and they
would be having 24 hour banking service at their own home PC or pocket PC . Actually the banks want to
get rid of the extra crowding of customers and to deal with more customers they would also have to hire
more employees . So by electronic banking there would be few customers to visit the bank directly which
would reduce the cost of banks for hiring those extra employees . Implementing the new technologies is too
costly but the reduce costs in the long run.

Cyber Crime
As the technologies have many advantages on the other side it also involves many security risks. Especially
the trend of cyber crime is increasing at immense level. Banks are also aware with these facts and they have
already taken a proactive step. The banks have implemented hacker proved system and tight security control
due to which it is very difficult for anyone to hack confidential information. Another drawback of this E-
banking system is that if the system goes down than the bank is paralyzed and cannot perform its tasks. It
can perform its operations and tasks without the system. So the banks should not only be dependent on these
electronic systems only. They must also have sum backup systems to deal with these kinds of problems.

Networks
The networking and other technologies LAN and WAN introduced in the banks have also improved the
efficiency of banks. By using the networks the communication and sharing of the different information
between branches of the bank has been become easier, efficient and speedy. The queries and issues of
customers are more efficiently processed and solved. Due to which customers feel good and their reliability
on banks also increase.

Economical Analysis
In the banking industry the economic forces of the country matters a lot. Economic conditions affect
different variables like incomes , employment, recession and prosperity which influences the demand for
banking services in that country . So a bank must understand the Economic forces that affect the banking
industry in order to enjoy a successful carrier. Some Economic factors which we analyzed from this analysis
are given below:

Level of Expenditure
In the current situation when economy is at nearly at recession . So government needs to increase its
expenditure and for that purpose it will have to borrow from the local banks , which would increase the
demand for the loans by the government.
 Higher Interset:
The rate of interest is increasing due to which the demand for money is decreasing and on other hand the
supply of the money is increasing. Most of private firms and households are not borrowing the money from
the banks due to higher interest rate.

Phase Of Economic Cycle

If we look at the global economic situation than we can see that nearly whole world is passing through
recession , banks are shutting down because people are going bankrupt , so most of the people globally are
not keeping their money in the banks . But luckily not even a single bank has been shut downed in Pakistan
and the banks have managed their good reputation in the eyes of people due to which the Pakistani banking
industry is not facing the mistrust situation by the government.

Environment Analysis
With the use of technology — particularly with mobile banking apps — the use for paper is being reduced.
Additionally, the need to drive directly to a branch to handle affairs is minimized as well. Many issues are
taken care of through mobile apps and online banking services. Consumers can apply for credit cards online,
buy cheques online, and have many of their banking questions answered online or by phone. Thus, reducing
individual environmental footprints.

Political Analysis
Political forces also play an important role for the continual of the smooth and regular operations of the
bank. The present political scenario of Pakistan is favorable for the banking sector because the present
government is establishing and maintaining good relations with the foreign nations due to which many of
foreign banks have entered the Pakistani banking industry.

Government Stability
One important force that affects the operations of bank in a specific country is the stability of the
government of that country. Currently the political situation of Pakistan is stabilized due to which the people
are keeping their money in banks and banks have enough money supply to carry their regular operations. In
case if the stability is disturbed than the people will take out their money from the banks due to which their
will be shortage of money supply for banks and would not be able to carry on their smooth operations.

Another effect of the political forces is that basically all the banks work under the supervision of the State
Bank of Pakistan (SBP). SBP decides the interest rate, Balance reserves with the banks and many other
policies. So when the government changes the some policies are also changed this affects the banking
industry a lot. The present policies and instructions given by the SBP are favorable for the banks and the
banks are happy with the current governmental policies.

Legal Analysis
Legal Forces are important and play a vital role for the establishment and continuous successful operation
of the bank. So the legal forces should be carefully observed by the banks. In our country State Bank of
Pakistan is the central bank which governs all the banks. All the banks need to work with in the instructions
and the permissions of the SBP. In our analysis we found the following facts related to the legal forces in
microenvironment of the bank:

Interest Rate
The most basic and important role of SBP is that it determines the Rate of interest ( cost of borrowing
money ) for the banks . The banks are bound to give the loans at the interest rates that are fixed by the
government. Now days due to high Interest rate the banks are receiving less demand from private sector.
People also complain the banks about high Interest rates.

Govt policies:
Another legal instruction that is given by the government is that no bank is allowed to leak out the personal
information of any customer. But if some intelligence agencies like FIA or governmental institutions like
FBR need the personal information of some one than the banks would have to provide the required
information to that institution.

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Another legal liability on the bank is that they have to keep a fixed amount of their reserve with the SBP and
with remaining reserves they have to do their business. The amount that must be deposited to the SBP is
determined by the SBP.

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At the end of the day the banks need to match out their reserves with the deposits that are allowed by the
government to keep with them

ETHICAL FACTORS
Regulations on discrimination on hiring and promoting:
The relationship between perceived discrimination in the workplace and a negative effect on both mental and
physical health of the employee. Employees who have experienced discrimination have higher levels of psychological
distress.

Low Trust between Employees and Management

Trust is the foundation of any successful relationship, both personal and professional, and when it’s broken, it is
extremely hard to repair. When employees feel they can’t trust leadership they feel unsafe

Discrimination of Female employees by male colleagues:

For women, some of the most harmful gender inequalities are enacted within human resources (HRs) Practices.